Semiconductor equipment spending to grow

Worldwide semiconductor capital equipment spending is on track to reach US$44.8 billion in 2011, a 10.2% increase from 2010 spending of US$40.6 billion, according to Gartner.

However, analysts warned that a looming semiconductor inventory correction, combined with oversupply in foundries, will lead to a slight spending decline in 2012.

All segments of the semiconductor capital equipment market are expected to experience growth in 2011. Gartner analysts said 2011 spending is being driven by aggressive foundry spending, integrated device manufacturer logic capacity ramping up at the leading edge and memory companies gearing up for double patterning.

Semiconductor capital equipment spending in 2012 will see a 2.6% decline, followed by 8.9% growth in 2013. The next cyclical decline should begin in late 2013, as the impact of memory oversupply takes its toll.

As semiconductor growth continues, worldwide wafer fab equipment revenue is expected to grow 11.7% in 2011. Intel, foundry and NAND spending will drive the need for leading-edge equipment, benefiting immersion lithography, etch and certain segments in deposition involved in double patterning and logic processes.

Worldwide packaging and assembly equipment revenue is expected to experience the smallest growth in 2011 at 3.6%.